Mondeling statement van minister Ploumen in het

Bijlage I: Mondeling statement van minister Ploumen in het Development Committee
“There’s a darkness on the edge of town,” as Bruce Springsteen sings. All is not well in our global
village. Globalization has worked out for many of us, but, at the same time, a lot of middle-class
people have fallen on hard times. Others, especially in the developing world, have never even seen
the good times to begin with.
The previous time globalization was under attack, its discontents were also at our door here,
protesting. So far, their understandable anger at inequality and injustice has passed our Bank by. But
is this Bank now seen as the human face of globalization? I believe we are not quite there yet either.
And so, on the way towards a full transformation, these are times of transition for the Bank. And as
they say about transition, you don’t change horses midstream. That is why I was one of the first to
pull the lever for Jim Kim this summer. President Kim, let me congratulate you on your re-election.
During your first term, this Bank often constituted a beacon of light, as shadows had fallen over our
global village – from disease to displacement and from an overheating planet to cooling economies. All
the while, you carried out a reorganization that went a long way toward bringing about the Better
Bank we need. A long way, but not all the way. To the stability you promise to bring to the
organization I say yes. To stagnation, however, I say no, and I know you do too.
The Forward Look looks good: less bureaucracy, more learning in lending and a better value
proposition for all clients, including the ones in my constituency. I am looking forward to the addition,
by the Spring Meetings, of a results framework with specific targets. In particular, I look forward to an
emphasis on three important tasks ahead of us, as we work towards a Better Bank.
First, getting closer to the client, through further decentralization. At least half of all staff should be
right where development happens. All those willing to go to fragile countries, the countries furthest
behind, should get ahead in their careers.
Second, getting closer to the private sector, by moving from slogan to strategy on “Billions to
Trillions”. Every country program should be judged by the resources it catalyzes and the results it
accomplishes.
Third, getting closer to civil society. The consultations with NGOs on the Environmental and Social
Framework, the most extensive ever, helped bring about a milestone: new safeguards that are both
stronger and more streamlined. Let’s build on this exercise by involving civil society more not just in
policy but also in projects, especially by joining forces in fragile states – the frontlines of the fight
against poverty.
President Kim, you have rightly pointed out that any further reforms, such as in the areas I just
mentioned, should be piecemeal, rather than wholesale. If we foist another change process upon our
weary staff, we will end up not with a Better Bank, but a bitter Bank. I am glad that the relationship
with staff will be a priority in the second term.
To conclude, let me turn from our human capital to our financial capital. Should it come to a selective
capital increase next year, something has to be done about the fallout of the new dynamic formula, for
example through a country dilution limit of 5%. We were looking for a formula to be fair to all and
friendly to IDA – but what we ended up with falls short on both counts. We agreed to consider the
need for a Bigger Bank next year, and we will. However, there should be at least a reasonable
realignment and, importantly, enough progress on a results-based Better Bank agenda. A better Bank
for a better world: a world that revolves not around the riches of the few, but the rights of the many.
Thank you.
Bijlage II: Schriftelijk statement van minister Ploumen voor het Development Committee
Statement by
Lilianne Ploumen
Minister for Foreign Trade and Development Cooperation
of the Kingdom of the Netherlands
Representing the constituency of Armenia, Bosnia and Herzegovina, Bulgaria, Croatia,
Cyprus, Georgia, Israel, Macedonia, Moldova, Montenegro, the Netherlands, Romania and
Ukraine
94th Meeting of the Development Committee
8 October 2016
Washington, D.C.
Today’s Development Committee meeting marks an important opportunity to position the World Bank
Group (WBG) in the development landscape for the years ahead. As we have turned our attention to
implementing the 2030 Sustainable Development Agenda, the Paris Agreement on Climate Change
and the Addis Ababa Action Agenda on Financing for Development, our constituency underscores the
important role the WBG has to play in making the next 15 years a success for development. We view
the WBG as a crucial partner in delivering development solutions and continue to value its convening
power, its public-private liaising function and its knowledge and expertise.
While we welcome the WBG’s continued support for the countries in the Europe and Central Asia (ECA)
region of our constituency, we urge the WBG to deepen its engagement in the ECA region to help
overcome enduring low growth rates. We especially encourage the IFC to increase its efforts to bring
in the private sector, driving economic growth.
Forward Look
Our constituency welcomes the Forward Look exercise as a strategic discussion to ensure that the
WBG remains fit for purpose as it faces the demanding tasks on the horizon. Sustainable development
requires the WBG to be at its best; the WBG’s value-for-money proposition requires continuous
improvements to its operational efficiency and effectiveness. We welcome President Kim’s leadership
in reforming the WBG and count on him to further improve the WBG’s business model by pursuing
simplification, agility and decentralization, while safeguarding organizational stability. We would like to
see the Forward Look developed into a work program with results indicators and specific targets for
that, to be discussed at the Spring Meetings in 2017.
Our constituency calls on the WBG to further expand its leadership on the Finance for Development
Agenda, as traditional development finance will never be sufficient to make the Global Goals a reality.
We share the WBG’s recognition of the critical role of the private sector and the need for domestic
resource mobilisation as well as public expenditure management. However, we urge the WBG to go
the extra mile to translate ambitions into tangible results and to set periodic targets for that in its
country-based approach. ‘From Billions to Trillions’ should be more than a catchphrase.
While the WBG is the world’s largest development organization, achieving the Global Goals requires a
clear division of labour with other development partner institutions. Our constituency underlines that
the WBG should focus on its core comparative advantages – such as mobilizing resources and
knowledge for development. We also encourage the WBG to fulfil its mission as One World Bank
Group. While we support the WBG’s enhanced focus on countries affected by fragility and conflict, the
WBG should seek to complement the work of other humanitarian and development players, especially
when it comes to issues of forced displacement. The newly developed Global Crisis Response Platform
is a good step in this direction.
Dynamic Formula
Our constituency takes note of the fact that a great majority of shareholders have reached a
compromise on the dynamic formula, which will serve as a basis for regular shareholding reviews,
reflecting the evolution of the global economy and countries’ contributions to the WBG’s development
mission. However, while the aim of the dynamic formula is to ensure a more equitable balance of
voting power, the proposed formula does not produce outcomes that are fair to all, taking into account
the different roles and responsibilities of WBG’s shareholders. Furthermore, the formula is not friendly
enough to IDA to entice new donors to contribute to it, nor does it adequately recognise established
donor contributions. Therefore, we expect the membership to take measures in the next stage of the
discussion to rebalance shareholding in manageable steps, for example by setting limits on excessive
dilution.
The governance of IDA needs to be reviewed to preserve its legitimacy and financial viability. IDA’s
business model will continue to depend on major donor contributions as we move towards leveraging
its capital base. The present distinction between Part I and Part II countries, which is also reflected in
the distinction at the IBRD between advanced economies on the one hand and developing and
transition countries on the other, does not sufficiently reflect the current global economic reality and
thus lacks credibility.
Forced Displacement
With an estimated 65 million refugees worldwide, refugee crises are putting additional strain on
developing countries, eroding hard-earned development gains. Our constituency has urged the WBG
to focus on addressing the root causes of forced displacement and to improve the economic
integration of refugees, particularly women and girls, in host communities. We appreciate the WBG’s
work thus far, especially the much-needed support provided to Jordan and Lebanon through the
Concessional Financing Facility (CFF). We also welcome the proposed window in IDA18 to provide
support for refugees and host communities.
Safeguards
Our constituency has been actively engaged in the WBG’s efforts to strengthen and streamline its
safeguard policies. We view the new Environmental and Social Framework as a welcome improvement,
and value the progress that has been made on human rights, indigenous peoples and the inclusion of
Free, Prior and Informed Consent, labour standards and non-discrimination. As the world’s largest
development institution, the WBG has a responsibility to continue to play a leading role in safeguard
policymaking. Additionally, we will closely monitor the implementation of the safeguards and
encourage the WBG to turn its attention to building countries’ capacity to take ownership of the new
framework. Ultimately, this should lead to greater efficiency and better outcomes for development.
Bijlage III: Communiqué van het Development Committee
Development Committee Communiqué
Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the
Transfer of Real Resources to Developing Countries
1. The Development Committee met today, October 8, in Washington, D.C.
2. Global economic growth remains sluggish in 2016, with only a modest pick-up expected in 2017.
Demand has remained soft despite highly stimulative monetary policies, foreign direct investment to
developing countries has decreased, commodity exporters are adjusting to declines in exports, and
wider geopolitical and economic uncertainties are weighing on confidence. We call on the World Bank
Group (WBG) and the International Monetary Fund (IMF) to work jointly with countries to enhance
synergy among monetary, fiscal and structural reform policies, stimulate growth, create jobs, and
strengthen the gains from multilateralism for all.
3. We share a vision of the WBG as a premier development institution: it plays a key role in advancing
policies essential for sustainable growth, poverty reduction, and economic transformation; leads on
global agendas; and helps ensure that the benefits of globalization are widely shared. During the next
15 years, the development landscape will face critical shifts, including climate change; natural
disasters; pandemics; fragility, conflict and violence; migration and forced displacement; urbanization;
and demographic changes. Meeting these challenges, and rising to the ambition of the Twin Goals, the
Sustainable Development Goals (SDGs) and the COP21 Agreement, will require a better, stronger, and
more agile WBG. This task will also require deeper engagement and collaboration with international
financial institutions and global partners, additional private funds, the ability to harness technological
change and increased country capacity to raise domestic resources. In this regard, we welcome the
report to Governors on the Forward Look: A Vision for the WBG in 2030.
4. We value the commitment to a more efficient and agile WBG that follows a risk-based approach,
upholds standards, exploits synergies across its institutions, and has a culture that supports these
shifts. Resources should be strategically deployed to meet global and client needs and targeted to
areas of the world that most need funding and have least access to capital, with a tailored value
proposition to the full range of clients. The WBG should strengthen the knowledge agenda, including
through enhanced monitoring, learning and evaluation frameworks and South-South flows and help
enhance countries’ crisis preparedness, prevention and response frameworks. We expect a progress
update on the Forward Look with clear results indicators at the 2017 Spring Meetings.
5. The private sector is essential to creating jobs and delivering higher living standards. Public policies
that improve governance and regulation, make markets more competitive, and increase openness and
predictability are prerequisites to higher investment and better development outcomes. We urge the
WBG to take a Group-wide approach to help create markets, particularly in the most challenging
environments, and to mobilize private resources, including through guarantees, especially for quality
infrastructure, and for small and medium enterprises. Bringing together the joint capabilities of all
WBG institutions is crucial to mobilizing finance for development and delivering global public goods.
We encourage the WBG to expand its strong collaboration with other multilateral development banks
(MDBs), in line with their recent declaration on infrastructure. We welcome the Global Infrastructure
Connectivity Alliance, announced in September 2016.
6. Mobilizing domestic resources and addressing illicit financial activities will be vital to unlocking
finance for development: we urge the WBG and IMF to foster policies and transparent institutions that
advance these efforts and improve public expenditure management. We applaud the WBG support to
the Stolen Asset Recovery Initiative. We welcome the progress that the IMF and WBG have made in
reviewing the Debt Sustainability Framework for Low-Income Countries. We stress the important role
that technology and the private sector can play in achieving the Universal Financial Access 2020 goal.
7. An ambitious IDA18 replenishment is key for delivering the 2030 agenda. We advocate for a strong
IDA18 replenishment, with a broadened donor base. We welcome the innovative financing and policy
package, including the proposal to enable IDA, which has recently received milestone triple-A ratings,
to tap into capital markets to complement its resources. We urge the WBG to ensure a smooth
transition as countries graduate from IDA. We also welcome the enhanced Crisis Response Window
and the proposal to scale up private sector activities, including an IFC and MIGA Private Sector
Window.
8. Large movements of people constitute a shared, long-term challenge for countries at all levels of
development. More than half the world’s poor live in countries affected by fragility, conflict, and
violence (FCV), where IDA support is particularly important. We welcome proposals to double financial
resources in these countries and to support, through tailored efforts to their specific needs, refugees
and the communities that host them. The WBG and the IMF should help tackle drivers of fragility, by
improving investment climates, strengthening local governance, rebuilding state institutions,
broadening access to finance, and fostering conflict prevention and resilience. The WBG should
increase resources allocated to these efforts, enhance its capacity to work in these environments,
expand its work on forced displacement and migration and work closely with humanitarian partners.
9. We welcome the Global Crisis Response Platform, announced at the Leaders’ Summit on Refugees
in September 2016, and urge its rapid implementation. We expect it to provide scaled up, systematic,
and better coordinated support to address crises, including those arising from forced displacement,
natural disasters and pandemics. The Global Concessional Financing Facility, the IDA Crisis Response
Window, and the proposed sub-regional window for refugees in IDA18 will be important for this effort.
As part of the Platform, we also welcome the launch of the Pandemic Emergency Financing Facility and
look forward to its early start-up. It will, together with upgraded efforts towards universal health
coverage, fill a critical gap in health financing architecture.
10. We look forward to implementation of the WBG Climate Change Action Plan and support countries’
nationally determined contributions under the COP21 agreement. We urge the WBG to continue to
focus on building resilience while expanding insurance schemes and increasing investments in climatesmart land use, green infrastructure, and sustainable cities. Small states are disproportionately
affected by natural disasters, including rising sea levels and extreme weather events. We ask the WBG
and IMF to continue supporting efforts to facilitate these countries’ access to climate finance for
adaptation, mitigation and improved disaster risk management.
11. Women still lag behind in most measures of economic opportunity, undermining national and
global growth prospects. The ambitions enshrined in the Twin Goals and the SDGs cannot be realized
unless countries make significant progress in closing gender gaps in key sectors. We strongly support
the continued implementation of the WBG 2015 Gender Strategy and the progress in diversifying WBG
staff.
12. We welcome the approval of the Bank’s new Environmental and Social Framework, which reflects
the most extensive consultations ever conducted by the WBG. The standards expand protections for
people and the environment in Bank-financed investment projects and are part of a far-reaching effort
by the WBG to improve development outcomes. We now ask the Bank to focus on effective
implementation, ensure appropriate financial and human resources to build staff and client capacity,
establish a robust accountability framework, and provide hands-on support where needed.
13. As part of the Voice reform, we remain committed to the Roadmap for implementation of the
Shareholding Review that was agreed at the 2015 Annual Meetings. We thank Executive Directors for
completing their work on a dynamic formula that reflects the evolution of the global economy and
contributions to the WBG’s mission. We look forward to the next stage of discussions, based on agreed
shareholding principles, formula guidance, and the package of commitments in the Report to
Governors on the Dynamic Formula.
14. We also look forward to considering options to strengthen the financial position of the WBG
institutions. We aim to conclude these discussions no later than the 2017 Annual Meetings in line with
the Roadmap endorsed in Lima.
15. We thank Mr. Bambang Brodjonegoro for his valuable leadership as Chairman of the Development
Committee, and welcome his successor, Ms. Sri Mulyani Indrawati, Minister of Finance of Indonesia, as
its first female Chair. We congratulate Dr. Kim for his reappointment as President of the World Bank
Group for a second term.
16. The next meeting of the Development Committee is scheduled for April 22, 2017.